2011 Senate Bill 351 / 2012 Public Act 225

Earmark some sales tax to roads

Introduced in the Senate

May 3, 2011

Introduced by Sen. John Proos (R-21)

To earmark a portion of sales tax revenue to road projects. Specifically, the bill would allocate 18 percent of collections from the first 4 percent of the 6 percent state sales tax. (Under the 1994 Proposal A initiative, the next 2 percent of this tax all goes to schools). The bill would not change current law provisions directing 15 percent of that first 4 percent to to state revenue sharing to local governments, and 60 percent of it to schools.

Referred to the Committee on Transportation

June 15, 2011

Reported without amendment

With the recommendation that the substitute (S-1) be adopted and that the bill then pass.

March 27, 2012

Passed in the Senate 26 to 11 (details)

To earmark a portion of sales tax revenue to road projects. Specifically, the bill would allocate 18 percent of collections from the first 4 percent of the 6 percent state sales tax for roads. Depending on the average price of fuel, this would provide between $100 million and $140 million for roads (or more if prices go higher).

Received in the House

March 27, 2012

Referred to the Committee on Transportation

May 2, 2012

Reported without amendment

With the recommendation that the substitute (H-3) be adopted and that the bill then pass.

June 6, 2012

Substitute offered

The substitute passed by voice vote

Substitute offered by Rep. David Agema (R-74)

To replace the previous version of the bill with one that caps the proposed earmark at $100 million annually.

The substitute passed by voice vote

June 7, 2012

Passed in the House 71 to 37 (details)

To earmark up to $100 million of sales tax revenue realized from fuel sales to road projects each year, based on a formula specified in the bill.

Received in the Senate

June 12, 2012

Passed in the Senate 26 to 11 (details)

To concur with the House-passed version of the bill, which caps the proposed earmark at $100 million per year.

Signed by Gov. Rick Snyder

June 25, 2012